3. Analysing operations Flashcards
1
Q
What is the difference between ‘value chain’ and ‘value-added’
A
Chain - What needs to come together in order for the product or service to arrive at the customer
Added - What the product brings to the customer
2
Q
What are some examples of value chain primary and support activities?
A
Primary - Inbound/Outbound Logistics, Operations, After sales services, Marketing and sales
Support - Admin, HR, Technology development, procurement
3
Q
When assessing outsourcing options what two models are used?
A
Relevant and differential cost model - ‘What costs will be saved and what costs will be incurred under each scenario?’ This is a cost focus.
Opportunity cost model - ‘Is the company using its limited resources in the best way possible?’ This is a revenue focus.
